The big news this past week from Nissan: lots of old iron at Pebble Beach, concept car test drives for sympathetic journalists and a pledge to have autonomous cars ready (but not on sale) for 2020. More interesting than that is news of Nissan’s booming exports from America. Some say that this is the “new normal” – Japanese OEMs expanding their manufacturing base in America as they leave Japan en masse to both insulate themselves from a volatile yen, take advantage of America’s welcoming manufacturing climate and shed a reliance on Japan’s aging and declining population. And even more interesting than that is how it was presented.
As a worldly American and car nut, on one of your world travels, there will be a time when you fall in love with a car in a foreign land. The crush on that thing will be so big that you will want to take the irresistible beauty home with you. Just ask Sajeev or Frau Murilee.
My advice: Resist that urge at all cost. Trust me, it is easier to import a new wife from Pago-Pago to America than to bring-in a lightly used Euro-spec Porsche from Zuffenhausen. There is one man who wants to change all that: A man with the initials B.S. petitioned the White House to liberalize the immigration rules for used cars. No, it’s not THAT BS. (Read More…)
Every once in a very blue moon, I’ll go to a mini-warehouse auction.
The realities of this low-down clearance process is completely unlike the miracles and glories that come with episodes of Storage Wars. You want junky third world quality furniture? Or memoirs of the 1980’s and 1990’s left behind by your neighbors from their very last estate sale before they finally moved to a condominium? The local storage auctions are the place to go. 80% to 90% pure junk.
This is where I recently found this wrecked 2002 Toyota Solara SE with 140k miles. For $375, it was all mine.
All the complaints about Japan being a “closed market” are hogwash; look at all the imports coming in to Japan from places like Thailand, Malaysia and China.
Isuzu is joining the “let’s flee Japan and the rising yen” bandwagon, and their latest venture involves assembling export-bound trucks in Saudi Arabia.
Sergio Marchionne has been one of the most prolific alarmists regarding European overcapacity, and who can blame him? The economy is in the dumps in Fiat’s home market, as well as crucial export markets, and closing a plant would come with all kinds of blowback.
Coda Automotive, a Southern California start-up that assembles EVs with Chinese components, announced at today’s Beijing Auto Show that it would partner with the Chinese OEM Great Wall to develop a new, lower-cost EV. Says Coda CEO Phil Murtaugh (who you might remember as a key character in American Wheels, Chinese Roads) explains in a press release
Which country is Toyota’s second largest export hub? If all goes according to the wishes of Yoshimi Inaba, president of Toyota Motor North America, then that will be North America. Toyota has an annual production capacity of 1.8 million vehicles in the U.S. alone and wants to export increasing numbers to the world, Inaba told The Nikkei [sub]. (Read More…)
We have always maintained that what will get exports of Chinese cars in high gear is not Chinese cars, but foreign cars. Foreign cars, made by joint ventures in China. Nevertheless, I admit my high surprise to read, from China Daily to Chinacartimes, that BMW will export Made in China cars. And not their bread and butter 3 series.
BMW will become the first foreign luxury car manufacturer to export China-made cars when it begins shipping locally produced long-wheelbase 5 Series sedans overseas at the end of the year. (Read More…)
With a 35% import tax on new cars, Argentina is already a touch market for foreign brands seeking to bring cars into the country. But the Argentinean government has just made it little bit harder by demanding that importers export an equal amount of Argentina-made goods for every car imported. As a result, Bloomberg reports that Porsche’s importer is exporting Malbec wines and olives, Mitsubishi’s importer is getting into the peanut export game, and Subaru’s representative is shipping chicken feed to Chile. BMW, which has had recent difficulties importing into Argentina, is focusing on its core business, exporting auto parts and upholstery… and a little processed rice to make up the difference. But why are these major manufacturers getting into all kinds of strange side businesses just because Argentina wants to improve its trade balance and foreign currency reserves? Simple: Argentina is South America’s second-largest economy, and it’s been growing at over 5% per year since 2007 (i.e. when other markets were shrinking). So if the government wants imports balanced with exports, well, Porsche’s importer is just going to have to get into the wine business, isn’t he?
Designed to be the world’s cheapest car, the Tata Nano is supposed to compete with scooters and three-wheelers rather than full-priced, global-brand vehicles. But the Nano has already seen several price increases since the target MSRP of $2,500 was announced, and the price in India for a base-level Nano is now about $2,870. And when you talk about such low prices, even small increases can wreak havoc on expected volumes, and as a result the Nano is turning into something of a flop (helped along by its pyromania problem).
China’s assault on the auto markets of the west may have been delayed another five years, but Australia is going to be the canary in the coal mine. The first mature Western-style market to see any significant imports of Chinese vehicles, led by the Chery J1, is adapting to a new era of low-cost, low-content cars. And it seems that the Chinese OEMs are right to be waiting for future generations of vehicles, as the J1 seems unlikely to make even the impact that Hyundai’s departed Excel made. One reason: safety. Or lack thereof. Hit the the jump to see what we’re on about.